Welcome back to a new tax year, I hope you all enjoyed the holidays. Let’s get the routine stuff out of the way before we talk about what’s new.
First a few reminders:
• If you are eligible for the Earned Income Tax Credit (EITC), I need to detail the documentation that you supply to support residency of qualifying
children, disability of qualifying children, and supporting documentation for self-employed individuals receiving the EITC. A list of acceptable
supporting documentation can be found on my website.
• Client’s with Dependents who are eligible to file a tax return. Make sure that they file as a “Dependent Filer”. I see it happen time and again;
your dependent’s get their first W-2, rush out and file a tax return to get their refund. Then the parent foots the bill to have that return corrected,
pay’s back the amount of the over-stated refund (with interest), and has to mail in their own return to rightfully claim their dependent’s
exemption which usually results in a higher refund than their dependent got in the first place. Don’t let this happen to you.
• If you use your vehicle for work or business, did you make note of your ending mileage for 2014?
Direct Deposit Restrictions now only allow three direct deposit refunds per return. In other words, you can only split your direct deposit refund
between three different accounts. Also, direct deposits are allowed only into an account with the taxpayer’s name.
Last year we briefly touched on the Affordable Care Act (ACA), which mandates that we all had to have health insurance starting January 1, 2014.
There is a lot of information that I will attempt to simplify for you.
• First, we must indicate that you, your spouse, and your dependents had health insurance, or claim an exemption from the requirement to have
• If you got health insurance through a marketplace (in MA that is through the Mass Health Connector), you may be eligible for the Premium
Tax Credit (PTC) if your income is moderate. If you got health insurance through a marketplace, you should also receive Form 1095-A which will
provide information necessary for us to compute and reconcile your PTC. Save this form and bring it with you for your appointment.
• If you did not have health insurance for all or part of 2014, you must show an exemption or make a Shared Responsibility Payment. You are
allowed one consecutive gap of coverage for a total of three months in 2014, but only if you had insurance for the remainder of the year. A chart
showing the types of exemptions available, and whether they must be granted by the Marketplace or Claimed on your Tax Return can be found
at www.irs.gov. There are 14 hardship exemptions, the complete list may be found at www.healthcare.gov. You must get your exemption from
the Marketplace before filing!
• If you are required to make a Shared Responsibility Payment (the tax for being uninsured), we will figure the amount on your Tax Return.
For 2014 $95 per adult ($47.50 for each family member under age 18) capped at $285 or 1% of household income whichever is greater.
The stakes go up in 2015 and again in 2016 where you could be paying $695 per adult, $347.50 per child, capped at $2,085 or 2.5% of household
income whichever is greater.
As always, please remember to utilize the Organizers on my website. They will help you be better prepared for your appointment, and reduce
delays in filing. Please make your appointments early to insure a convenient time slot. Drop offs are always welcome, and if you find you have
received all of your required documentation early, January appointments are usually readily available. E-filing starts on January 20th this year.